Commenting on this morning’s UK PMI data, Melanie Baker, senior economist at Royal London Asset Management said:
“The UK composite PMI is now signalling strong growth, consistent with expectations of a robust pick-up in activity as lockdown restrictions continue to ease. Business optimism remains high, boding well for the near-term, assuming the government’s ‘roadmap’ out of lockdown remains on track.
“The improvement in the employment PMI was encouraging given how weak that indicator has been over the crisis and the heavy usage of the furlough scheme.
“However, in the Euro area and UK PMI data there were further signs of rising near-term inflationary pressure. That continues to partly reflect global manufacturing supply chain issues. Central banks will be alert for signs of rising underlying domestic inflationary pressure, but that is much less evident so far.”
About Royal London Asset Management (RLAM):
Established in 1988, Royal London Asset Management (RLAM) is one of the UK's leading fund management companies, providing investment management solutions to both wholesale and institutional clients such as not-for-profit organisations, local authorities and the insurance sector.
RLAM manages £153 billion of assets and employs 126 investment professionals as at 30 June 2021. It invests in all major asset classes including UK and overseas equities, government bonds, investment grade and high yield corporate bonds, property and cash.
For professional clients only, not suitable for retail investors.
Issued by Royal London Asset Management Limited, registered in England and Wales number 2244297; authorised and regulated by the Financial Conduct Authority. Registered Office: 55 Gracechurch Street, London, EC3V 0RL.
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